If biting an elaichi while eating biryani is frustrating, so is finding a mismatch in your book of accounts even after recording all the transactions!
Mismatches don't pop out suddenly. They just hide behind granules of transactions all the time. Accountants reconcile bank statements with the accounting records and catch these culprits wearing the masks of bank charges, uncleared and cleared cheques and so on.
The final statement of differences prepared after reconciling the bank balance as per books and bank balance as per statement is the Bank Reconciliation Statement (BRS). Companies prepare BRS daily, weekly or fortnightly to keep their books accurate. Then, there are a few who don’t and suffer. If you are one, better reconcile from day 1 with the right solution.Prepare BRS in a click
Cheques issued would have not been cleared by the bank. If the status had not been updated in the books, then mismatches emerge. At times, the receiver would have forgotten to deposit the cheque too.
Until you check bank e-statements, you will not have any clue about such happenings. Banks don't notify these via SMS either.
Cheques received from a party or contra cheque transactions would have not got cleared by the bank. Forgetting to update will cause chaos in your books.
To err is human. If the cheque cleared data in your books is different from the actual cleared date, especially in case of post-dated cheques, then it's same as losing your mobile phone in a crowded place. You have to depend on divine luck to locate it.
Even after recording all the payables and receivables, the above will not let your actual bank balance in the e-statement match with the bank balance as per your books. Apart from catching these culprits, preparing a bank reconciliation statement will help in identifying stale cheques and tracking every penny that moves in the company.
The above terrorizes when they actually happen. As hackneyed as it sounds, prevention is always better than cure.
New entries will be made and wrong entries will be removed from the books to tally the balances. Once every entry in the bank e-statement is matched with the entries in the books, the Bank Reconciliation Statement can be prepared with unreconciled items.Experience Auto BRS
Every accountant has just one wish: Not even a penny should go out of my sight. The price paid to achieve it is incomparable at times. Matching 100s of e-statement entries with book of accounts test the patience of matchmakers, here, accountants. Simply put, it demands huge manual effort as they are error prone.
Tech providers understood the stress and automated e-statement reconciliation with accounting software. From then on, tech equipped accountants started doing wonders.
Waving goodbye to errors, screen switching (between BRS sheet and e-statement) and rechecking
Identifying the missing entries in the book of accounts in a click
Saving up to 90% effort spent on reconciliation
By the way, those are the top three reconciliation benefits enjoyed by the customers of Gofrugal
The downloaded bank e-statement can be uploaded directly into the accounting software. Entries in the software will get matched with the e-statement entries and the cleared date will be updated automatically.Know how
Gofrugal went a little further and partnered with ICICI bank to simplify banking operations. A customer of both these entities, can download the e-statement within the software and all it takes is just one click to reconcile and find out the mismatches. The effort in handling the mismatches has become negligible with this integration.Know how